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Corporate governance and family businesses

Why are family businesses important?
Family businesses are an essential part of the social and economic structure of most Latin American and Caribbean countries and account for a considerable share of their gross domestic product. Therefore, the region’s employment levels and growth rates depend largely upon the success of family businesses.

What is the main objective of creating a governance system in a family business?
The objective is to create a strong, trustworthy, long-lasting family business. In addition, good corporate governance contributes to sustainable development by improving company performance and increasing access to external sources of financing.

What are the benefits of implementing these policies for the families?
Implementing a corporate governance system helps the families to achieve clear and efficient collaboration between owners and management, and between management and the family. Furthermore, when processes are clearly established, all stakeholders understand their roles and are willing to work flexibly and openly.

Is my company too small to adopt these processes and structures?
The truth is that corporate governance structures can and should be adapted to fit the reality and size of each company. In the case of family businesses, having policies that ensure effective communication between family members, the business, and shareholders and that ensure business continuity is especially important for guaranteeing the well-being of the family and the sustainable growth of the business.

What effect does formalizing these structures have on my company's ability to attract capital?
Globally, there is a growing tendency among financial institutions to make corporate governance an integral part of the structure of loan and investment assessments. In addition to its potential impact in terms of risk, corporate governance is an important sustainability issue that is gradually coming to be on a par with environmental and social issues. Without a doubt, companies with sound governance structures and processes stand out to investors.

Corporate Governance Annual Symposium

What kind of enterprises can attend the Corporate Governance Annual Symposium?
The Symposium is aimed at the owners of client SMEs and their families.Therefore, this event represents a unique opportunity for different family-owned companies from all across Latin America and the Caribbean to share their experiences and explore strategies to achieve effective governance.

FINPYME Family Business events

What kind of enterprises can attend the FINPYME Family Business events?
There are no general requirements. Each event is tailored to a specific audience.

Does it cost anything to participate?
As a rule, yes, although the cost is generously subsidized by FINPYME Family Business and its local partner for each event. The companies attending usually pay no more than 25% of what the full cost would be.

FINPYME Family Business Direct Technical Assistance Program

How can my company receive a Technical Assistance on governance?
In order to qualify, the IIC’s clients go through an assessment carried out by the corporate governance team. Please find more information on our Technical Assistance factsheet.

Does it cost anything to receive a Technical Assistance on Governance?
The technical assistances are co-financed between the IIC and the company. While the IIC covers 50-75% of the cost, the company’s contribution shows its commitment to improving its governance.